How much are Legal Fees for Debt Recovery?
Farleys’ Debt Collection Team provides a range of fees for its services and these are set out below. These costs apply where your claim relates to an unpaid invoice which is not disputed (“Undisputed Debt Collections Fees”).
If the invoice is disputed by the debtor, or there are additional contractual documents to review (such as terms and conditions), our Undisputed Debt Collection Fees will not apply. In such cases, we will give you an estimate of the likely costs of pursuing the matter on your behalf, with an explanation of those costs.
Stage 1 – Letter of Claim
– £175 plus VAT of £35, totalling £210 where the debt is less than £10,000 and comprises no more than 5 invoices;
– £250 plus VAT of £50, totalling £300 where the debt is between £10,000 and £100,000 and comprises no more than 5 invoices.
Our letters of claim will demand payment of the outstanding debt by an agreed deadline and include any appropriate claim for interest and late payment charges.
Stage 2 – Issuing County Court Claim Form
Should the debtor fail to pay the sum demanded by the deadline specified in our letter, you may wish to commence court proceedings. Our fees for preparing the Claim Form and Particulars of Claim and issuing the papers at court will range between £750 plus vat, totalling £900 and £2,500 plus vat, totalling £3,000 for undisputed debt claims not exceeding £100,000.
In addition, you will incur the following court issue fees which are based on the amount you are claiming plus interest;
| Value of your claim | Court Issue Fee |
| Up to £300 | £35 |
| More than £300 but no more than £500 | £50 |
| More than £500 but no more than £1,000 | £70 |
| More than £1,000 but no more than £1,500 | £80 |
| More than £1,500 but no more than £3,000 | £115 |
| More than £3,000 but no more than £5,000 | £205 |
| More than £5,000 but no more than £10,000 | £455 |
| More than £10,000 to £100,000 | 5% of the value of the claim |
Timescale
Once the Court has issued the claim, the Defendant shall have a period of 14 days to file a Defence. If the Defendant files an Acknowledgment of Service, indicating an intention to defend the claim, this time limit is extended to 28 days.
Additional services if necessary
The prices stated below are for our legal fees. Please note that related disbursements may also be payable for specific services, such as Court or process server fees.
Stage 3 – Entering Judgment
If the debtor fails to file a Defence to your claim, an application can be made for a Court Judgment. Our Undisputed Debt Collection Fees are:
– Up to £10,000 – £125 plus VAT of £25, totalling £150.
– Over £10,000 – £250 +VAT of £50, totalling £300.
An application is made to enter judgment immediately following the expiration of the time limit permitted for the filing of a Defence.
– Warrant of Execution – £125 +VAT of £25, totalling £150
– Attachment of Earnings – £250 +VAT of £05, totalling £300
– Third Party Debt Order – £275 +VAT of £55, totalling £330*
– Charging Order over property – £7500 + VAT of £150, totalling £900
Anticipated Disbursements
– Court application fees – £135
– Representative’s fees- will depend upon hearing location
– Other disbursements may apply such as search fees and land registry fees.
Timescale
A typical timescale for enforcing a judgment is 8 – 12 weeks, although this can vary depending on Court availability.
Insolvency
Issuing a Statutory Demand – Winding Up / Bankruptcy
£500 + VAT of £100, totalling £600
Anticipated disbursements
– Process server fees: £125 plus vat of £25, totalling £150.
Timescale
Once a statutory demand has been served upon the Debtor, the Debtor shall have 21 days to make payment.
Bankruptcy Petition
£2,750 plus VAT of £550, totalling £3,300*
Anticipated disbursements
– Process server fees – £125 plus vat of £25, totalling £150
– Court application fee – £343
– Official Receiver Deposit – £1,500
– Representative’s fees -will depend upon hearing location
Winding Up Petition
£2,750 + VAT of £550, totalling £3,300*.
Anticipated disbursements
– Process server fees – £125 plus vat of £25, totalling £150.
– Court application fee – £343
– Official Receiver Deposit – £2600
– Representative’s fees – Will depend upon hearing location
– London Gazette Advertisement -£101.52 plus vat of £20.30, totalling £121.82.
A typical timescale for obtaining a bankruptcy order / winding up order is 8 – 12 weeks from the presentation of the petition.
*Fee includes one attendance at Court and does not include court fees, process server fees, advertisement fees, Official Receiver fees, Land Registry fees, bailiff fees or barrister’s fees.
Anyone wishing to proceed with a claim should be aware of the following
– Interest and statutory compensation may take the debt into a higher banding (see above) which in turn may incur a higher cost.
– Disbursements such as Court fees will vary depending upon the value of the debt.
– Our fees do not include providing you with advice in relation to your claim and merely cover the transactional process for recovering an undisputed debt.
Our Onboarding Fees
Our onboarding charges cover client verification, source of funds verification and the setting up of your matter on our case management system:
| Charge | VAT @ 20% | Total Fee (including VAT) | |
| Individual | 35.00 | 7.00 | 42.00 |
| UK Company | 50.00 | 10.00 | 60.00 |
| International Company | 80.00 | 16.00 | 96.00 |
| Other legal entity | 50.00 | 10.00 | 60.00 |
| Source of Funds | 35.00 | 7.00 | 42.00 |
The charge will be a one-off fee added to the bill for new clients on their first matter only.
What qualifications do the team hold?
Specific team members experience and expertise can be seen in individual staff profiles.
